Episode 26 — Choose Risk Treatments Wisely: Avoid, Reduce, Transfer, Accept, or Retire (Domain 2)
Selecting the appropriate risk treatment is a strategic decision-making process that determines the ultimate trajectory of an AI project in Domain 2. This episode details the five standard risk treatment options: avoiding the risk by canceling a project, reducing it through technical controls, transferring it through insurance or contracts, accepting it when it falls within tolerance, or retiring an existing system that has become too hazardous. For the AAIR certification, candidates must be able to justify which treatment is most appropriate for a given scenario based on cost-benefit analysis and organizational risk appetite. we explore examples such as transferring liability for a third-party LLM through strict contractual clauses or reducing bias in a predictive model through data augmentation. It is important to recognize that risk acceptance is not a passive act but requires formal documentation and periodic re-evaluation by the risk owner. Mastering these treatment strategies allows risk professionals to provide nuanced recommendations that support business objectives while maintaining the integrity of the organization’s safety and compliance standards. Produced by BareMetalCyber.com, where you’ll find more cyber audio courses, books, and information to strengthen your educational path. Also, if you want to stay up to date with the latest news, visit DailyCyber.News for a newsletter you can use, and a daily podcast you can commute with.
